Hordes of investors charge Mongolian bond

The Government of Mongolia staved off its latest re-payment difficulties on Thursday with the successful completion of an exchange offering and bond issue.

Getting investors to swap their $580 million Development Bank of Mongolia DBM notes for a new longer-dated sovereign issue was of critical importance to the country given it only had $1.27 billion in foreign exchange reserves three months' cover to repay the debt, which falls due on March 21.

But its marketing efforts more than paid off. A total of $3.3 billion in investor demand overwhelmed the $124 million new-money component of the eventual $600 million liability management exercise.

However, investors’...